IT'S REAL - SPAIN WILL HAVE A SMOKING BAN

No doubt for many the fact that the Spanish Government has passed its smoking ban in public places will be welcomed. Done despite the attempts of opposition parties to water down the legislation.

From the 2nd January 2011 smoking will be banned in all bars, restaurants and enclosed areas with the exception of prisons, psychiatric units, smoking clubs, pensioner units and units for the disabled.

Hotels will be allowed to reserve up to 30% of their occupancy to smoking rooms.

According to the government the legislation, bringing Spain in line with the rest of Europe, will prevent just under a million workers from being exposed to smoke inhalation.

Whilst central government has requested the assistance of the regional governments on the implimention of the ban there does not seem to be any certainty as to how this will be done.

On the Costa Blanca where tourism is a primary source of regional income the thought of a smoking ban is a little too much to bear. The bars and restaurants are struggling enough without a further downturn in business because smokers choose to go to an open terrace to eat or drink. As we all know many bars and restaurants do not have terraces.

There is the fear that the tourist industry will suffer due to the ban. Where previously the liberal smoking regime has enticed those from Countries will bans this may no longer be the case.

Whilst it might have been more appropriate to introduce the legislation in summer the fact remains that this is not the case. So as of 2nd January 2011 Spain will have no smoking in public places. Policing it might be a totally different matter!!!!

Written by Jo Caress of Costa Blanca Lawyers

HAPPY NEW YEAR - CRASH BANG WALLOP GOES YOUR MARRIAGE

So here it is you have got through Christmas, New Year is just a few days away yet you know you are in a marriage you want out of. Thoughts may be that come the New Year you will drop the bomb shell or will it be crash bang wallop bang goes your marriage when your spouse drops the bomb shell on you?

It is that time of year again where couples for a variety of reasons separate. Whether it is due to the stresses and strains of life, financial issues, or other reasons it is a fact that now is the time when the incidence of separations take place.

Whether we like it or not infidelity is the primary cause of separation and divorce and the fact that one person has strayed is often blamed for the break up of the marriage. Wrong! It is the result of a broken marriage not the cause.

Whatever the reason for separation life on the Costa Blanca in 2010 has been difficult to say the least and it is not surprising that the incidence of those separating is on the increase.

With difficult economic decisions to be made, the reduced or lack of income and the general strain of life for the expat on the Costa Blanca I think it has to be accepted that separation in a number of instances is inevitable.

The difficulty is that with the economic climate as it is resolving financial issues between two people cannot be easy. There is often only the matrimonial home as an asset and in the present climate the sale of that property would not be to the advantage of either party. However, it is often impossible for couples to fund two properties.

Moreover where children are involved other considerations must also be met.

It is often a natural reaction for the mother to wish to return to the UK to be with her family and start again often with the knowledge that she will receive benefits and/or be able to obtain gainful employment.

The trouble is that it is not that easy and if children are habitually resident in Spain then returning them to the UK is child abduction whether we like it or not. So for anyone facing a separation and considering returning to the UK or indeed any other country they should think twice before they do so and should most certain get consent before they do so.

At the time of any separation or indeed for those contemplating separation they should seek legal advice on their own situation. Every persons circumstances are different so what applies to one person may not apply to another.

Specialising in international divorce and separation issues we know the problems encountered, moreover we know how to deal with them. For anyone needing assistance then they can see our website at http://www.costablancalawyers.com/ . Our new website dealing specifically with international divorce will go live on 1st January and will be packed with information intended to assist those living in Spain.

Written by Jo Caress of Costa Blanca Lawyers

SPAIN FINANCES 2011

Quite what the state of Spanish Finance is, is unknown to the general public, particularly the expat community.

It is obvious that the banks do not have any money. Moreover the crippling property market has left buyers reeling and being unable to pursue their purchase because that once available mortgage was no longer there.

Employment levels have dropped despite the unadjusted figures provided. Unemployment has reached 20.8%.

More and more employers are putting employees on part time contracts and the increase in people working on the black economic is more marked.

It is generally accepted that Spain has no money. Hacienda is short to repay monies due and despite the fact that their website states that Capital Gains Refunds will be made within 90 days it fails to do so. In reality it is expect it when you see it.

With the situation prevailing regarding Ireland and its budget deficit and the need to borrow from the EU this raises questions over Spain and Portugal alike. Both have delicate financial situations and notwithstandings Spains Austerity Budget in September there are clearly many anxious faces around.

The reality is all we can do is wait and hope that the situation is not as bad as is anticipated.

The worrying part is what happens if it is and at the moment no one has the answer. There will undoubtedly be further difficulties.

The banks need to work together to create a level playing field. They are not known for their compassion when it comes to mortgage payments, something many expats find hard to understand. However, they do need to realise that there is often the will to pay at a lower level which is often preferable to no payment at all.

Furthermore the cost of repossession is high and with the many properties with no or negative equity repossession is often a way out for an owner. Banks really need to think hard about this. There is no logic in having the number of properties they have with no buyers and they being unable to offer mortgages to buyers. It seems like financial suicide.

The problem is that they have had it so good for so long and have never really had to contemplate the situation as it exists at the moment.

As this blog is written we know that times may still change and there is a glimmer of hope the trouble is it is out of our hands and in those of the politicians, maybe they will think in view of the impending elections about the effect of their actions.

Costa Blanca Lawyers will keep you updated as events unfold but if anyone does need advice then please contact us via http://www.costablancalawyers.com

COSTA BLANCA LAWYERS - Round Up 2010

Could anyone have envisaged the rapid changes on the Costa Blanca over the last 12 months. In 2009 we thought we had seen the difficult times yet they continued with avengence and this year has been a real struggle for most.

For those who tell us otherwise we are sceptical, although there are a small number of businesses flourishing in difficult times.

The sad part is that divorce and separation are on the increase. This is often caused by financial issues and if a couple are experiencing a particularly difficult financial time then a marriage can often take its toll.

There are the usual reasons for separation unconnected to finance and this will always be the case.

Despite the number of times we have written about Wills there are still those who refuse or do not consider it necessary. How wrong they are. It causes distress to those around them in the event of death and in some instances it is impossible to obtain probate.

Estate Transfer can be straightforward if what is needed has been anticipated. However, many families are left with what can only be described as a mess because no thought has been given to the consequences. There is often tactical planning required to minimise Inheritance Tax, something which is often disregarded or misunderstood. We have seen beneficiaries lose thousands because no careful planning was made.

With the Spanish financial climate being as difficult as it is, this has hampered business growth and property purchases.

The banks have been unable to lend money in the way previously known. One client was informed by their bank when they enquired about a mortgage. Sorry but we have no money!

The question of Residency continues to be a problem for people. Many think they are a resident yet they fail to understand that they actually have to tell Spain that they are here - they then wonder why Spain will not accept that they are residents.

Conversely there are many property owners who do not reside in Spain who do not appreciate that they need to do a Non Residents Tax Return and then wonder why they have been fined for the failure.

As with many issues failure to understand does not excuse the situation.

Car transfers have been particularly difficult this year. With many expats returning they have sold their vehicles, probably in all inocence but the right paperwork has not been completed. This leaves two problems, firstly the vehicle is still in the name of the original owner and secondly the new owner can never get title because they have no idea where the seller is.

It is likely that the problems for the expats will continue in 2011 but just a little thought and understanding of the spanish system would go a long way to preventing some of the problems faced.

Capital Gains Tax Affecting Sellers in Spain

For a long time now we have been dealing with the reclaim of Capital Gains Tax for non residents who sold their properties but paid over the odds in Capital Gains.

The EU intervention put paid to the 35% charged on the sale of a property.

Bringing the tax paid by both residents and non residents alike was brought into line at 18% which is where it has remained since January 2007.

Bearing in mind that the Capital Gains Tax payable is based on the NET gain when taking into account expenses we have seen many who in more recent times have been entitled to a reclaim. This is caused by the decrease in value of properties on the Costa Blanca and the fact that many are actually selling at less than they purchased.

There is, however, a hidden problem that sellers are unaware of and that is the fact that in January 2010 Capital Gains Tax on the sale of a property increased to 19% for a gain of under 6000€ yet the increase to 21% on gains over 6000€ seems to have escaped peoples notice.

Only on the sale of a property or in attempting to reconcile the amount actually payable is this coming to peoples notice.

At the point of sale 3% of the declared value is retained and the sellers are then left to work out what their Capital Gains Tax liability is and how to go about it.

Sellers really should be advised before they sell their property of their potential liability but no one seems keen to tell a seller that they might have more tax to pay than they thought.

This problem is largely aimed at the Non Resident home owner but can affect residents too, particularly if they have owned their property for less than three years.

So whilst the finding of a buyer is exciting it is wise to be aware of your financial situation.

For more information or advice on the sale of your property, particularly if you are a Non Resident in Spain contact Costa Blanca Lawyers via the website at http://costablancalawyers.com/ Your Capital Gains Tax liability is your responsibility.

VEHICLE TRANSFER SPAIN

The number of people either buying or selling a motor vehicle privately has increased significantly in the recent past. Mostly by those returning to their homeland.

What may seem the ideal sale or purchase is now turning into a nightmare for some. Why?

Because of the lack of understanding of the transfer system in Spain. Often money changes hands some papers are handed over or signed and everyone thinks that that’s it. Well it isn’t.

For those selling a vehicle it is important that the vehicle is legally transferred out of your name. Until this happens you are legally responsible for any fines, the suma and insuring the vehicle. If the vehicle is involved in an accident and there is no valid insurance you may be held responsible.

Moreover, if you sell a vehicle you have no control over the conduct of the buyer on the road which may lead to denuncias, prosecution or the vehicle being impounded, all while it is still registered in your name.

For those buying you don’t want to find that you are left with a vehicle that is not registered to you. You can’t pay the annual tax because it is sent to the original owner and you certainly cannot sell it or scrap it when the time comes.

So for the sake of getting it right there are some steps that should be taken to protect yourself if you are involved in such a transaction.

In the first instance there should be a contract of sale between the parties. This is legal confirmation of the agreement between the buyer and seller.

All the transfer paperwork should be signed by both parties. Both parties should also ensure that they have copies of the other parties NIE and Passport. Nobody can buy a vehicle if they do not have an NIE number.

Ensuring that you have someone oversee the transfer will help for both parties concerned.
Unfortunately, as with many things Spanish there are fees involved and it is often this aspect that leads to problems. The buyer doesn’t realize that there is transfer tax that needs to be paid and then cannot afford it so doesn’t do anything about it, leaving the seller as owner of the vehicle.

For some they are desperate to sell the vehicle and have really no concern about the consequences of the transfer not being done – why would they, they will not be here to deal with it.

For anyone thinking of buying or selling a vehicle they should ensure that they know what is required of them, how much it will cost and how it should be done.

It is a well known fact that Trafico are difficult to deal with but without the correct paperwork it is impossible, no matter what your explanation is.

RENTING A PROPERTY IN SPAIN

For many the renting of a property looks like a good option when either moving to or living in Spain.

However, before entering into any tenancy agreement you should get the content checked. Many rely on the word of the agent regarding the content, some just sign anyway.

It is only when things go wrong do people actually turn to the wording of a rental agreement and often they have a few surprises.

It is common to have an 11 month contract. Check to see whether there is any cancellation clause and whether or not the contract can be broken.

Problems with the condition of properties are not uncommon and attempting to deal with a Landlord can prove difficult.

Agents rarely want to become involved in any issue and tenants are often left to their own devices.

Whilst historically, landlords have just moved on and re-rented a property they are now exercising their rights to take proceedings against tenants who have vacated a property.

More often than not the tenants have "given notice" either verbally or in writing but usually in English and believe that that is sufficient. Often it is not.

Those facing court proceedings is increasing and any tenant should take care when thinking of leaving a property before the end of the rental period.

The cost of protection is very little compared to the liability that may be faced for a breach of contract.

NON RESIDENTS TAX SPAIN

Its that time of year again when those who do not permanently live in Spain need to consider their tax position.

For those who own a property it is a requirement to complete a Non Resident Tax Return. Failure to do so will result in a fine.

For those who have never completed a tax return they may say well i haven't been fined so why bother. True. However, the different departments dealing with tax and ownership of properties are linking up and it won't be long before they catch up.

Please remember that Spain has no money. Collection of taxes that should be paid but hasn't is an easy option and one that it likely to be easy to identify.

For anyone owning a property in Spain but who is not a tax resident they should now prepare to complete their annual tax return. It must be submitted before 31st December each year.

If you require further information then please contact Costa Blanca Lawyers at www.costablancalawyers.com

BUSINESS SURVIVAL 2010

Costa Blanca Lawyers have for too long dealt with businesses struggling to survive. The number has increased in line with the economic crisis yet there is a common thread to most businesses in difficulty. They do not have a feasible and honest business plan and never have had.

It's no wonder they flounder when in trouble, having no idea what they have coming in or out or whether they have overheads that are affordeable or whether they could be cut to save cost.

On the Costa Blanca times are harder than in other areas, particularly the UK, and many are returning in the hope that they can create a better life there. But even then that is not always the case.

Obtaining frank, honest and practical advice before deciding on a business venture is vital. You need to be aware of the costs of set up, many of which are hidden before you start. It's no good realising a couple of months down the line that you cannot afford the essentials.

Many work out the basics but don't realise the full implications of the costs of running a business on the Costa Blanca. Social Security and taxation is high, as are employers contributions. The quarterly taxes need to budgeted for. Even if you are on the modular system where you pay the same amount every quarter, the fact remains it needs to be paid.

Opening a new business is a brave move in the present climate but a move that can also be foolish. Unless you know your client base and the expected revenue such a move could prove dangerous and disasterous.

Before you open look around at other businesses and how long they have been there. It is a well known fact that those that are established will survive in an economic down turn whereas a new or relatively new business will fail.

As a word of warning even established businesses are struggling so think very carefully before you act you could be committing financial suicide.

For those in business and struggling seek legal assistance before it is too late quite often a little negotiation and discussion regarding structure can help resolve issues.

Don't be soft, there is no room for sentiment in business and if you are to survive then do the right thing and make sure you do. You may need to cut staff. You will be amazed the savings you can make. Your landlord may be more helpful than you might think. Looking at your outgoings see how else you can reduce them - you may be surprised!

For more information or assistance contact Costa Blanca Lawyers at www.costablancalawyers.com

RESIDENTS TAX RETURNS 2010

OK, it’s that time of year again when preparation for the filing of Annual Tax Returns starts.

It is an accepted part of life for those working in Spain.

However, for those who “just live” in Spain there is the belief that there is no need to file a return in Spain because taxes are paid in the UK:

This illusion has been held by many for years. But it won´t be for much longer. The Hacienda now has access to the Catastral and already letters have been received asking why a property owner is not registered for Tax, whether it be as a resident or a non resident.

Where previously no one really bothered about who was paying tax and where, in the current climate and with the need to raise more revenue this will no longer be the case.

Indeed many who have bought a resale property have never received any advice on their Tax situation and are oblivious of the requirements. Unfortunately, ignorance is no excuse.

You have been warned!

To set the record straight.

If you are a non resident (are not in Spain for more than 183 days) then you need a fiscal representative. Further you should file a non residents tax declaration.

If you live in Spain for more than 183 days of the year then you are a resident of Spain and should file an annual tax declaration.

You will not be required to pay tax twice, as there is a double taxation treaty between Spain and the UK. For those on a Civil Service pension there is no option but to pay the tax in the UK.

Declarations for the year 2010 are now being prepared. The time to file a residents Tax Return is May-June but you need to get your paperwork in order now. The final document required will be a P60 usually received in April.

As with all tax related matters personal circumstances vary so it is vital to get advice. To assist expats we are holding weekly surgeries, which are free of charge. All you have to do is phone and make an appointment.

Finally there are benefits to filing a residents Tax Return in Spain, where allowances are given against mortgages, children etc. As with the UK there are personal allowances. There is also the option for a married couple to file a joint return, which can be of benefit. It can also assist when calculating Inheritance Tax.

For more information or to make an appointment please see http://www.costablancalawyers.com/ and don´t forget THE FIRST CONSULTATION IS FREE

MAKING A SPANISH WILL

No matter how many times we write about it people still don't realise how serious it is that they have a Will to cover their assets in Spain should they die.

For many they seemingly believe that it doesn't matter. Well it does.

All too often we are left with the remnants of once a happy life.

Firstly, a loved one has passed away. Then when it comes to the practicalities of sorting out the assets it becomes clear that everything is not in order.

With no Spanish Will we have to look at alternatives. If an English Will exists then we have to look at whether there are any assets in the UK upon which we can obtain Probate. Sadly, when many move to Spain they move all their assets as well so there often isn't anything.

If that is the case then working our way through the complicated system to identify the legal inheritors is both time consuming and can prove expensive.

It leaves the family fustrated and unable to comprehend why this situation exists. As many will know the laws of inheritance in England often do not cause too much problem if someone dies without a Will. This is not, however, the case in Spain.

One fundamental problem if obsticles can be over come is that of Inheritance Tax. Again the difference in application of this tax is often a surprise to those involved.

The simple solution is to get a Spanish Will covering your assets. You can leave them to whoever you wish as you are governed by the laws of your nationality not Spain. However, be warned the Inheritance Tax implications can be enormous and serious advice should be taken from those that really understand the implications.

There are many who will prepare a Spanish Will with a basic understanding but really knowing the consequences for a Client is paramount. If an advisor is not able to tell you the Inheritance Tax figures then be careful.

For anyone considering making a Spanish Will they should consider carefully just who they are going to leave their assets to. There may be practical problems as well as financial. A good advisor will be able to guide you in the right direction.

Making a Spanish Will does give peace of mind and once done should not need to be changed.

Throughout April Costa Blanca Lawyers are doing Spanish Wills for 100€ plus the Notary Fee.

For anyone wanting comprehensive advice on Spanish Wills and Inheritance Tax then see http://www.costablancalawyers.com or email them at webenquiry@costablancalawyers.com.

This article was written by Jo Caress of Costa Blanca Lawyers

REPOSSESSION OF PROPERTY IN SPAIN

Unfortunately for many the prospect of losing their property in Spain is a harsh reality.

For many it is a holiday home with a mortgage which had until the economic crisis been an affordable luxury. However, as times have become tighter the payment of the mortgage on the property in Spain has become secondary to the needs to pay bills in the UK. They obviously come first to the property abroad.

It was with some surprise that the spanish banks seemed not to acknowledge the difficulties with their customers. Nor did they take any action to assist them. Their view was "you must pay" and for some this was an impossibility.

For those living in their Spanish home the economic crisis has seen many lose their jobs, particularly if they were working in the property sector or associated trades, leaving them unable to pay their mortgage.

Sadly for many expats they have not been in the Spanish system either at all or for long enough to qualify for the limited benefits available.

The number of expats returning to the UK is unclear but there is clear evidence that the numbers are not low.

Abandonment of a property is not uncommon leaving the bank to deal with the repossession process without the owners being in the country.

The banks have somewhat belatedly, now realised the situation and there are certain options available to those facing repossession but they must fit certain criteria.

The level of repossession is so high that that the banks are now advertising repossessed or distressed properties for sale.

If anyone is in a situation whereby they either can't or may not be able to pay their mortgage then they should talk immediately to their lender because they may be able to help.

BUT BE WÄRNED some banks are not making any alternative arrangements. If you have a Mortgage you can be stuck with it without the bank making any changes.

A further difficulty that has arisen is the fact that there are more separations. Whilst settlement of the assets may be agreed between the parties the banks must give their consent to a change in Mortgage Deed. They are very reluctant to take a persons name off a Mortgage Deed because it reduces the prospect of recovery should repossession become an issue.

So even if you have resolved the financial side of a separation the bank may not.

If anyone is facing such a difficulty or has issues with their Mortgage then contact http://www.costablancalawyers.com/ who will try to assist you

BUYING A BAR IN SPAIN

For many it seems like the easy option of making a living after moving to Spain. But for many the dream turns into disaster.

Ill thought out planning and with no idea of the market many fail before they have been given the chance to start.

One salient factor is often money. Usually not enough in reserve to get a business going.

Ill thought out business planning or none at all leave newcomers to the Costa Blanca without a chance of success.

Over the last 12 months we have seen bars sold and then sold and then sold. More often they are just abandoned by those whose dream has disappeared.

For anyone contemplating buying a bar on the Costa Blanca they should err on the side of caution and work out before hand how much they can realistically afford and how they intend to run the business.

Prices of bars have clearly reduced to a more acceptable level but there are agents out there who will make money from you if you do not do your research first.

Before you do anything. Have a good look around on your own. Work out where is busy and why. Then look at where isn't and why!

Whilst there are a number of trusted agents on the Costa Blanca, make sure you do your research first and don'tbe persuaded into buying something you don't want.

For anyone please make sure that you have sufficient funds behind you to keep you going whilst you build your business.

It doesn't really matter what trade the previous owners had - it's what you make of it when your in there that matters. Attracting the customers is priority - keeping them is paramount!

There is undoubtedly stiff competition, the hotels with all inclusive deals have taken their toll on the local trade. However, if you get is right you will succeed.

There are helpful sites to assist in finding the right bar or restaurant and information on how to go about buying a business. Check out http://www.businessesbylawyers.com/ or http://spainbusinessguide.com/ where you will find the information you need.

No bar or restaurant should be bought without obtaining independent legal advice. There are many bars operating without a licence and there isn't the prospect that they will ever get one. It pays to check these things out before you commit to a purchase. You might find it is money well spent.

If you want information generally on Benidorm and the surrounding area then you should see http://www.realbenidorm.net/

For legal advice and assistance on buying a bar or restaurant then see http://www.costablancalawyers.com/ They will help you and advise.

EDUCATION IN SPAIN

It is often said that the biggest decision made when moving to Spain is the education of a child. Much depends upon the age and ability of the child, but taking into account their personality is often something that is overlooked. Yet it is the one thing that can make or break a child in a new school, especially if they are dealing with a new language.

There are two schools of thought surrounding the education of foreign children in Spain.

Either put them in Spanish school and see how they go OR

Put them in a private English School.

There are actually sound reasons for both. It should be said that consideration of the future of the child should be the primary concern.

Consideration should also be given as to whether in reality your move to Spain is a long term permanent one or whether it is only likely to be for a short period.

For many the return back to the UK causes the children more problems than the move to Spain because they have been out of the UK education system for too long to be able to cope with what is expected of them on their return.

The Spanish education system works towards the baccalauriat (equivalent of GCSE/A levels) and it is internationally recognised.

Your child will also be totally bi-lingual which can only be a benefit in an ever shrinking world.

The Spanish Education system provides further benefit in that the expat children are integrated into the Spanish Community and they learn about Spanish Values and customs meaning that life generally for them is much easier.

For those with children of 10 plus consideration of a Private school is sometimes not an option but a must because the state schools will not accept children who are not fluent in Spanish in the institutes. Quite often attempts to go through the state system at this age fail, leaving more difficulties of how to educate the child.

The cost of private education does not come cheap and is relative to private education/cost of living.

If you do choose to put your child into private school be prepared for them to remain there until they complete their education or until you return to the UK.

One downside to private education is that for the children attending their command of Spanish is far interior to that of children in state schools.

One difficulty often encountered when a child leaves an English school is that they are often unable to find employment in Spain and they return to the UK leaving the parents in Spain. Or they return to the UK to complete their education at univercity or college. This is something which often was not envisaged but which sadly is a common occurrence.

If your children are younger and you intend to remain in Spain it is worthwhile considering the Spanish system, they will benefit. Some critisise the spanish system as not been as good as the english system. Weighing up the balance is a matter for the parents and the children.

There is no right or wrong option it is purely personal at the end of the day.

Do bear in mind that older children do find it harder to integrate and learn the language.

LIFE IN SPAIN IN 2010

One paper recently quoted “End of the Eldorado dream: A plunging pound and property crash have left thousands of expat Britons on the breadline”

For some sadly this may be right. Particularly those who retired to Spain, bought a property with a mortgage and relied on a pension, whether it be private, state or both.

Taking a closer look at those living in Spain. Many have been here for years, have worked hard and retired benefitting from their cross border life with a spanish pension paid in euros.

Younger people having moved to Spain have integrated into the spanish system and do not rely upon the pound for their income. Their life is totally immersed in Spain. Any pension entitlement they may have in the future from the UK is likely to be very small.

Where working people are suffering, and indeed closing their bars and restaurants, is in areas reliant upon the pensioner and tourist trades. This affects everyone. Yes pensioners are not eating out as much, if at all and are remaining at home.

The Tourists to the area are clearly lower. With hotel price wars and all inclusive deals around it is clearly a choice for the visitor. But are the tourists staying away at the levels reported. That might not be that clear cut.

In Benidorm there is certainly a downturn in business leaving many established bars and restaurants struggling and many more closing.

But the dream of leaving the UK to run a bar has never been easy. How many over the years have done so only to return having failed? More than you may think. The turnover of bars has always been high. It's just that now the prices for the sale of a bar have dropped significantly in line with demand.

It´s not easy to move to another country, particularly if you have children, and everyone considering doing so should look closely at their future aspirations it may not be that of their children.

For those under an illusion that life in Spain is all sun, sea and sangria, let´s be honest those that work have to work twice as hard to succeed. It doesn´t really matter what you did in the UK it is what you have to offer in Spain that matters.

Employment in Spain for the expats has never been easy to come by. Failure to speak Spanish is a common flaw. This leaves many unable to gain employment. With the need to work paramount to remaining in Spain they work on the black, usually odd jobbing, painting, decorating, gardening, pool cleaning etc. Unfortunately, when times are difficult these are the luxuries that people cut back on.

It goes without saying that the property boom is over anyone who tries to say otherwise is mad. However, how harmful is this? The property prices in Spain, particularly on some of the Costas really did become overinflated, leaving a seller to name their price without anxiety of whether a property would sell because it always did.

With the slump of the property market has come the dawning of the true worth of a property. Everyone believes that their own property has a high value, but the time has come for honesty. The true value of a home is the amount a person is prepared to buy it for.

However, as with all other things, when times are tough there are always those with money to invest. Without doubt property sales continue albeit at a lower price but the buyers are usually cash buyers looking to invest for the future.

The lack of mortgages around is causing difficulty but until there is more confidence from the banks this will not change.

Another reason for the downturn in mortgages in Spain is their requirement of correct paperwork, something not necessarily requested before to give a mortgage.

Holiday home purchasers are certainly down, particularly those from the UK but again this will continue into and possibly to the end of 2009 until the pound becomes stronger.

No one can really envisage what will happen with the pound against the euro although general feeling is that it will get worse before it gets better.

Living in Spain at the moment for some may not be easy but look at the alternatives.

For those on a pension they have seen their income eroded by 30% in a 12 month period.

The cost of living in the UK was significantly higher than Spain but you do have to question whether or not that is now the case. The supermarket wars in the UK mean shopping is at a record low. It doesn't help that the cost of electricity and water in Spain has increased over the last 12 months.

The climate is often a reason to move to Spain in the first place, bringing better health for the elderly and retired.

For the young returning there is the misplaced belief that they can claim benefits as soon as they arrive. To claim benefits in the UK you should be habitually resident and this is often a little difficult to explain having just got off a plane, being out of the country for several years. The time involved in resolving these issues works against the theory of the benefits immediately and often causes anxiety over and above that experienced in Spain.

Apart from the climate there is life itself. The streets are safer, crime is lower, ok the drivers are a bit nuts, but by and large Spain is a much better place to live.

Now, more than ever, is the time to support one another and where possible ensure that as many as possible can remain in Spain. Tales of the poor Brits abroad do not go down well in the UK, some have said you left, it´s your own fault you´re in this mess not ours! Sympathy for those struggling in Spain is limited. Let´s face it for years we have been the envy of those who did not have the courage to move themselves. Envy can be evil.

One final point, comment has often been made of the Brits in Spain, but who in all honesty is keeping the economy alive. If you removed the Brits in Spain the reduction in the Spanish economy would be astounding. Moreover the Spanish know it!

BANKING IN SPAIN IN 2010

It is not uncommon to hear surprising stories about banks in Spain. They are in fierce competition and in some ways struggling to come to terms with the demands of their clients. However, that is good news for the customers.

The British on the Coast have seen it all before when from the 90’s onwards when the banks were offering anything and everything to anyone.

It must be remembered that Spain whilst steeped in history, has only really developed since the Civil Code was written and Franco deposed some 30 years ago. It has, however moved on leaps and bounds.

It is not that long ago that mortgages were virtually unheard of and unless you had cash you couldn’t really buy a property. The banks didn’t give loans and there was no such thing as an overdraft facility. This is not now the case.

Banks in Spain make money on the charges levied to the client and everyone should be aware of those unknown deductions made from your account. You should always check what they are for and that they are legitimate. The odd 10€ here and there may not matter but it does add up. The more worrying fact is that they usually come out without any warning.

For anyone opening a bank account you should check clearly what the costs involved are, what the on going costs are, what you will be charged for debit and credit card transactions and whether interest will be applied to the account.

It could be beneficial to check whether there are any high interest accounts that leave you access your money when ever you wish. There are some great deals around at the moment.

As with anything in Spain do not rely on what you are told ensure that you check the Spanish documents you will be asked to sign. You can get caught here just as you can with anything else in Spain. Don’t forget that in Spain if you sign a document you are deemed to understand it, whether or not you did !

Mortgages are somewhat difficult to come by at the moment but if you are looking for finance then shop around. There are banks who will lend at a reasonable rate and the time spent investigating this will be time well spent.

If you have property or a mortgage in Spain then you will probably know that the amount lent was based on the valuation of the property and not the purchase price. This method of lending has left many in difficulty.

However, the problem is now that the valuation companies are down valuing properties to such an extent that the banks won’t lend on a true purchase price.

There is still the difference between resident and non resident mortgages but a number of banks accept the fact that if you pay social security you are a resident.

Many banks are now offering equity release or re-mortgage. This is an excellent idea for those that have all their investment tied up in property. However, the criteria for qualifying for an Equity Release scheme is hard. Moreover there are some schemes around that really are not what they appear to be. So if you are thinking about Equity Release then stick with a high street bank. You should watch carefully for the small print and check exactly what is entailed.

So if you are looking at your current account, a mortgage or equity release shop around and find what suits you. And remember everything in Spain is negotiable including bank fees and charges !

CHILD ABDUCTION IN SPAIN

2009 hasn’t been the easiest of years for many on the Costa Blanca. Unfortunately, it has led to separation of couples many with children.

This has largely been because the pressures and lack of work have been too much for one or both.

For many the return to the UK where benefits and housing can be obtained has been the obvious choice. However there are problems.

Providing a child has been habitually resident in Spain for 12 months, if any mother returns to the UK without the consent of the father to remove the children from Spain then they are guilty of child abduction which is a criminal offence.

Many return oblivious to this and in all innocence.

However, the number of fathers taking action, which is quick, is increasing. There really is no defence to this action and the children are always returned to Spain, with or without their mother.

Basically a hearing takes place after the passports of the mother and children have been confiscated, an Order is usually made on the basis that the children will be returned to Spain, the flight will be booked and the mother and children escorted onto the plane. The Order usually has a clause that the father will undertake not to bring criminal proceedings against the mother upon her return to Spain.

In some instances custody is awarded to the father.

This leaves an innocent mother distraught at the loss of their child and probably without the financial means to return and live in Spain.

It is a frightening process and one which everyone should be aware of.

It is a question of Think before you Act!

As long as the father consents to the mother returning there is no abduction. This should be in writing.

For anyone in this situation considering leaving Spain then they should seek legal advice to ensure that their actions are legal.

Costa Blanca Lawyers are committed to helping families in distress and with the difficulties faced. If you need assistance then contact them at http://www.costablancalawyers.com/

DIVORCE IN SPAIN

So your year has been bad enough and you’re glad to see the back of 2009 and then bang goes your marriage!

OK it might have been hard for some time and perhaps living in Spain in the crisis of 2009 might not have been the easiest of times. Financial burdens add to an already struggling marriage and for some it is just too much.

January is notorious for being the month of separation, the stress of couples being together over the Christmas and New Year period is often enough to break an already fragile relationship.

Separation is no longer just a question of dividing the assets and moving on. The primary asset in any relationship is often the home. Due to the property slump it is difficult to sell and this leaves further financial burden with one party probably living in the property and the other effectively homeless or without the means to resolve their living accommodation.

If anyone tells you that the English Courts cannot deal with property in Spain – don´t believe them. It can and is in many divorces, providing that those that are dealing with the issue know what they are doing.

For anyone contemplating separation it is essential that they consider the implications of their actions. Be aware of your situation and entitlement. Please try where possible to resolve as many financial issues as possible.

Many seem under the illusion that because they live in Spain they must divorce here. Others believe that either one or both p arties should have an English address to divorce in England. These two beliefs are blatantly wrong and ill founded.

Understanding the cross border laws and what can and cannot be done is a specialist subject and should only be dealt with by those with experience in such issues. Whether you should divorce in Spain or England depends very much on your own personal situation. There are benefits to both systems but getting it wrong could prove costly.

One common thread to separation are the children, where they will live and what the law is in relation to parents being in different countries. Again advice is given in the hope that these issues can be resolved. Whilst EU law is clear, what is not are the practicalities of how it is actually implemented in different countries.

For a parent intending to return to their homeland they should consider their situation carefully before they do so. It might be child abduction which is a criminal offence and treated very seriously.

Many have fallen into the trap simply through lack of knowledge and the want to provide for their children in the safety of their homeland.

Both parents have a joint parental responsibility both financially and emotionally and the fact that they have separated does not dissipate that responsibility.

Both parents are entitled to contact with the children but they should remember that the needs of the children come before the wishes of the parents. However, with parents who are living in different countries then clearly a departure from the normal arrangements needs to be made to the extent that it is fair to all concerned.

On a final note it is not accepted that a mother says the father cannot see the children because he is not paying maintenance. Whilst this view is understandable it is for the Courts to ensure that the maintenance is paid not for the intervention of the mother.

For those worried about their situation, wishing to discuss separation and the consequences in a foreign country then assistance is close at hand. At Costa Blanca Lawyers our FIRST CONSULTATION IS FREE.

INHERITANCE TAX IN SPAIN

So you’ve got your Spanish Will. But what are the consequences of your actions. Did anyone explain Inheritance Tax in Spain to you? Probably not.

Sadly enough, it is a fact, that everybody must depart from this world at one time or another. Their assets, however, will remain. Those goods and assets that belonged to the deceased person at the time of his/her death form their inheritance.

For many it is only during a time of grief that the question of Inheritance Tax raises it’s head. And for some it is a great shock.

Fiscal Residents of the Communidad Valencia receive tax relief on Inheritance Tax. Unfortuntately, what constitutes a Fiscal Resident is often not appreciated and whilst many people have lived here for years and believe that they are a resident, they are not.

This leads to difficulties with Inheritance Tax.

A further problem is often the construction of the Will itself. Many couples are in a second relationship with children from a first and proper and adequate planning has often not been given as to how to deal with this. This again can have a significant bearing on Inheritance Tax, particularly for unmarried couples.

To consider each individual situation, you need to look at the value of the assets in Spain, the relationship between the deceased and the beneficiary and the net worth of the beneficiary. All these factors are taken into account to calculate Inheritance Tax.

For those who are not fiscally resident in Spain they should look carefully at their situation, and where appropriate ensure that they have sufficient funds set aside to pay Inheritance Tax in the event of their death.

A further important factor is that for many they ultimately leave their assets to their children who are usually not resident in Spain. They will have Inheritance Tax to pay because they will not benefit from the tax relief available to fiscal residents.

There is also the misconception that there is no inheritance tax because it is below the threshold. This view is based on the allowances in the UK which have absolutely no standing in Spain.

In certain circumstances there are no allowances for a beneficiary in others there is an allowance of just under 16000€ which, lets be honest is not much. So when faced with this situation there is the question of who inherits and to what extent their liability is to inheritance tax.

Whilst fiscal residents in the Valencia Region and their spouse/children who are also fiscally resident in the region do benefit from 95% tax relief, sadly is it not available for anyone who does not fall into that criteria such as a partner or non resident.

This is particularly relevant to those couples who are unmarried. Will or no Will there is no tax relief and the tax payable is at a much higher rate. Don’t forget that you can leave your assets to children from a previous relationship whilst protecting your partner.

Getting the right advice and working out what is best for you and your loved ones could save thousands. It doesn’t matter how many times we write on this topic there are still those that don’t listen and it is usually to their loved ones cost.

It is usual that children inherit on the death of the second parent, they having left their assets to each other in the first instance.

One problem for the Expat in Spain, is that there is an illusion that upon death the estate passes automatically to the Spouse.

This just isn’t right. Failure to make a Will causes unbelievable difficulties for the family left behind.

Getting the right advice and working out what is best for you and your loved ones could save thousands. It doesn’t matter how many times we write on this topic there are still those that don’t listen and it is usually to their loved ones cost.

Whether we like it or not the Spanish system is in place to keep assets within the bloodline. As a UK national, English law applies to your Spanish Will and you do have the democratic right to leave your assets to whoever you wish, but make sure you get it right.

If anyone just takes instructions from you without discussing your circumstances and/or inheritance tax and your beneficiaries exposure to it – BEWARE. You could be making a costly mistake.

Cross border laws and tax implications are complex and everyone is entitled to know their own position before making an informed choice.

For more information contact Costa Blanca Lawyers http://www.costablancalawyers.com/

SPANISH WILLS

It never really sinks in when people make a Will that the consequences of their actions may have a bearing on those they leave behind.

Many a time we see ill thought Wills, prepared by because the client said that that was what they wanted. Or in many instances the Will contains what they were told they had to do.

That’s all well and good but when your loved ones then find that they either do not inherit or they have a massive Inheritance Tax bill, the problems start. No consideration was given to what could be done and the consequences.

The main reason for this is the fact that the Spanish have compulsory heirship and only freedom of disposition of one third of their assets. Further, there is no understanding of the difference in English Law as against Spanish and what the English can do as against what the Spanish cannot.

Despite the number of times we have written about the subject of Wills people are still not listening and every week it is necessary to deal with those that have been bereaved and there is either no will, an English will with no English assets or they were told that they had to divide the estate in accordance with Spanish Law.
If you are English you have the democratic right to leave your assets to whoever you wish. Don’t let anyone tell you otherwise.

Spanish Wills should not be drawn simply on the basis of “this is what I want”. Any caring practitioner would take you through every element of the content of the Will, the consequences and liabilities.

Additional consideration must also be given to those in a second relationship with children from a previous relationship. This is particularly so when trying to protect not only your current partner but the children as well. There are ways and means to ensure that what you really want to happen does.

It should also be remembered that unmarried couples are particularly vulnerable when it comes to inheriting a partners assets. They are no relation and no matter how long you have lived together are not regarded as spouse.

So for those thinking of leaving their assets to their partner and then to all children between you – think again. Advice should be sought as to the amount of Inheritance Tax which would be payable both on the first death and then again on the second.

You should also bear in mind that anyone can change a Will at anytime. So if you pass away leaving everything to your partner and then to all the children between you there is nothing stopping them changing their Will to leave to their own children leaving your own devoid of the inheritance you thought they would receive.

Calculating Inheritance Tax takes into account a number of factors and it is not simply good enough to just take into account the value of the estate. You should look at how that value is calculated. Moreover residency status in Spain for the expat community is vital to the calculation and anyone considering making a Will should look closely at that situation too because it can save thousands in Inheritance Tax where appropriate.

For information on Inheritance Tax in the Valencian Region contact http://www.costablancalawyers.com